SSE: Sci-Tech Innovation Bonds Facilitate the Rapid Development of Sci-Tech Innovation Enterprises

Wang Chun, Reporter of Science and Technology Daily

Currently, the SSE sci-tech innovation bond market is expanding rapidly. On March 20, SSE revealed that since late February, several issuers have issued sci-tech innovation bonds with a total fundraising amount of more than 30 billion yuan. In 2024, SSE assisted 424 high-quality enterprises in issuing sci-tech innovation bonds of 510.5 billion yuan, with a year-on-year increase of 68% and a cumulative issuance of nearly one trillion yuan.

Sci-tech innovation bonds, namely bonds of sci-tech innovation enterprises, were launched by SSE and SZSE in 2022 under the guidance of the China Securities Regulatory Commission. They focus on supporting financing in high-tech and other fields to facilitate sci-tech innovation. Central SOEs serve as the main force in the sci-tech innovation bond market, accounting for 45% of the issuance volume in 2024. As a central SOE specialized in sci-tech R&D, China Academy of Machinery Science and Technology Group Co., Ltd. has strong technical strength and more than 7,000 achievements. In December 2024, it successfully issued 2 billion yuan of 5-year sci-tech innovation bonds for the development of key projects. According to the person in charge of the underwriter Zheshang Securities Co., Ltd., this move has diversified the financing channels of China Academy of Machinery Science and Technology Group Co., Ltd. and reduced financing costs.

The head of SSE's bond business stated that SSE will promote the formation of a virtuous cycle of sci-tech innovation, continue to support central SOEs in serving the national sci-tech innovation strategies, and promote digital transformation.

Private enterprises from technological sector also accelerate their pace to the technological peak with the help of sci-tech innovation bonds. In 2024, the scale of sci-tech innovation bonds issued by private enterprises on the SSE increased by 51% year on year. For example, United Imaging Group, TBEA Co., Ltd., and Xiaomi Communications Co., Ltd. successfully issued sci-tech innovation bonds, creating excellent demonstration effects. United Imaging Group issued China's first private enterprise sci-tech innovation bond in the healthcare industry, with a scale of 1 billion yuan, a term of 3 years, and an interest rate of 3.19%. The funds raised were used for sci-tech innovation, thereby accelerating its global layout. According to researchers, more specialized and innovative private enterprises are expected to leverage sci-tech innovation bonds to tackle financing challenges.

Subsequently, SSE will promote the financing experience of central SOEs to local state-owned and private enterprises based on improving the quality and expanding the volume of sci-tech innovation bonds. In addition, it will improve the bond financing support mechanism, serve more high-quality enterprises, and give full play to the positive role of sci-tech innovation bonds in national strategies.

The above information is provided for reference purposes only and does not constitute investment advice.